Your term insurance policy will pay money to your family only if you die.
In case you survive the term, you will not get anything in return. What if God forbid, you have an accidental disability which causes loss of income as well?
In addition to medical expenses, there will be other expenses like household expenditure, loan EMIs etc.; which you would have to deal with.
However, without income, you might find it difficult to deal with all these expenses. On the other hand, because you are alive, your term insurance company will not pay anything.
If after an accident, you are in a hospital, your health insurance policy will take care of your medical bills up to a certain limit. However, in addition to medical expenses, you may have to experience loss of income as well.
Consequence: You will have to pay the remaining medical expenses along with making proper arrangement to recuperate from the financial loss that may arise due to loss of income.
So where is the solution?
Even after buying health and term insurance policies, a gap is there in your insurance portfolio, which you can fill with a personal accident insurance policy only.
Mainly covering all sorts of disabilities, here are some of the benefits of purchasing a personal accident insurance policy:
- A basic accident insurance policy covers both accidental death and disability and can be further enhanced to get extra cover
- From minor to major, a personal accident policy covers all types of accidents ranging from falling off a stair at home, fracturing an arm while playing football to getting hit by a vehicle
- It is a useful policy as it offers coverage against partial, temporary, or full disability and even the loss of income
- Some of the policies are bundled with extra features like child education allowance, coverage for injuries caused due to terrorism, transportation of mortal remains, etc.
When should you buy and how much coverage is sufficient?
Remember, accidents can happen even in four walls of your house, so, it is necessary to buy a personal accident insurance policy be 100 times of your monthly salary.
It means, if your monthly salary is Rs 5,000, your personal accident coverage should be minimum Rs 50,00,00.
Make sure to buy the policy when you are young because the chances of meeting with accidents are high during that phase of life.